Can IDACORP, Inc.'s (NYSE:IDA) Weak Financials Pull The Plug On The Stock's Current Momentum On Its Share Price?
Can IDACORP, Inc.'s (NYSE:IDA) Weak Financials Pull The Plug On The Stock's Current Momentum On Its Share Price?
IDACORP (NYSE:IDA) has had a great run on the share market with its stock up by a significant 14% over the last three months. However, in this article, we decided to focus on its weak fundamentals, as long-term financial performance of a business is what ultimately dictates market outcomes. Particularly, we will be paying attention to IDACORP's ROE today.
IDACORP(紐交所:IDA)股票在股市上有着良好的表現,過去三個月股價上漲了顯著的14%。然而,在本文中,我們決定專注於其基本面較弱的部分,因爲企業的長期財務表現最終決定了市場結果。具體來說,我們將關注今天的IDACORP的roe。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
對於股東來說,股東回報率(ROE)是一個重要的考慮因素,因爲它告訴股東他們的資本被有效地再投資了多少。換句話說,它是一個衡量公司股東提供的資本回報率的盈利能力比率。
How To Calculate Return On Equity?
如何計算股東權益報酬率?
The formula for return on equity is:
權益回報率的計算公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
淨資產收益率 = 淨利潤(來自持續經營) ÷ 股東權益
So, based on the above formula, the ROE for IDACORP is:
因此,根據上述公式,IDACORP的roe爲:
8.6% = US$283m ÷ US$3.3b (Based on the trailing twelve months to September 2024).
8.6% = 28300萬美元 ÷ 33億美元(根據截至2024年9月的過去十二個月)。
The 'return' is the yearly profit. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.09.
「回報」是年利潤。這意味着對於股東的每1美元投資,該公司可以創造0.09美元的利潤。
What Is The Relationship Between ROE And Earnings Growth?
What Is The Relationship Between ROE And Earnings Growth?
So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
到目前爲止,我們已經了解了ROE是衡量公司盈利能力的一個指標。我們現在需要評估公司再投資或「保留」未來增長的利潤量,以此給我們提供公司增長潛力的想法。假設其他所有因素保持不變,ROE和利潤保留率越高,相比不具備這些特徵的公司,這些公司的增長率就越高。
IDACORP's Earnings Growth And 8.6% ROE
IDACORP的盈利增長和8.6%的roe
At first glance, IDACORP's ROE doesn't look very promising. However, given that the company's ROE is similar to the average industry ROE of 9.3%, we may spare it some thought. On the other hand, IDACORP reported a fairly low 3.9% net income growth over the past five years. Bear in mind, the company's ROE is not very high . So this could also be one of the reasons behind the company's low growth in earnings.
乍一看,IDACORP的ROE看起來並不令人信服。然而,考慮到該公司的ROE與9.3%的行業平均roe相似,我們可以多加思考。另一方面,IDACORP過去五年的淨利潤增長率僅爲3.9%,請記住,該公司的roe並不算很高。這可能也是導致該公司盈利增長低的原因之一。
We then compared IDACORP's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 6.7% in the same 5-year period, which is a bit concerning.
然後,我們將IDACORP的淨利潤增長與行業進行了比較,發現該公司的增長數據低於相同5年期間的平均行業增長率6.7%,這有點令人擔憂。
Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. Has the market priced in the future outlook for IDA? You can find out in our latest intrinsic value infographic research report.
盈利增長是估值股票時要考慮的重要指標。投資者應該試圖確定股票中是否已經定價了預期的盈利增長或下降,從而幫助他們判斷股票的未來是看漲還是看跌。市場是否已經定價了IDA的未來前景?您可以在我們最新的內在價值信息圖研究報告中找到答案。
Is IDACORP Using Its Retained Earnings Effectively?
IDACORP是否有效利用其留存收益?
IDACORP has a three-year median payout ratio of 60% (implying that it keeps only 40% of its profits), meaning that it pays out most of its profits to shareholders as dividends, and as a result, the company has seen low earnings growth.
IDACORP的三年中值分紅比率爲60%(意味着公司只留下40%的利潤),這意味着它將大部分利潤分配給股東作爲股息,因此,公司的盈利增長較低。此外,IDACORP至少連續十年支付股息,這意味着公司管理層決心支付股息,即使這可能意味着幾乎沒有盈利增長。根據最新的分析師估算,我們發現公司未來三年的股息比率預計將保持在58%左右。因此,預測表明IDACORP未來的ROE將爲9.3%,這與當前ROE相似。
Additionally, IDACORP has paid dividends over a period of at least ten years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 58%. Accordingly, forecasts suggest that IDACORP's future ROE will be 9.3% which is again, similar to the current ROE.
此外,IDACORP在至少十年的時間內支付了股息,這意味着即使幾乎沒有盈利增長,公司管理層也決心支付股息。根據最新的分析師估計,公司未來三年的股息比率預計將保持穩定在58%。相應地,預測表明IDACORP未來的ROE將爲9.3%,與當前ROE相似。
Summary
總結
Overall, we would be extremely cautious before making any decision on IDACORP. As a result of its low ROE and lack of much reinvestment into the business, the company has seen a disappointing earnings growth rate. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
總的來說,在對idacorp做出任何決定之前,我們都會非常謹慎。由於其低roe和對業務的重投資不多,公司的盈利增長率令人失望。話雖如此,最新的行業分析師預測顯示,預計公司的盈利將加速增長。要了解更多有關公司未來盈利增長預測的信息,請查閱有關該公司分析師預測的免費報告。
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Simply Wall St的這篇文章是一般性質的。我們僅基於歷史數據和分析師預測提供評論,使用公正的方法,我們的文章並非意在提供財務建議。這並不構成買入或賣出任何股票的建議,並且不考慮您的目標或財務狀況。我們旨在爲您帶來基於基礎數據驅動的長期聚焦分析。請注意,我們的分析可能未考慮最新的價格敏感公司公告或定性材料。Simply Wall St對提及的任何股票都沒有持倉。